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10 Dec 2005, 14:18

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C

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A company's two division performed with remarkable consistency over the past 3 yrs. In each of those years, the pharmaceuticals division has accounted for roughly 20 percent of dollar sales and 40 percent of profits, and the chemicals division for the balance.

Which of the followng can be inferred regarding the past 3 yrs from the statement above?

1. Total dollar sales for each company's division have remained roughly constant.

2. The pharmaceuticals division has faced stiffer competition in its markets than has chemical division.

3. The chemicals division has realized lower profits per dollar of sales than has the pharmaceutical division

4. The product mix offered by each of the company's divisions has remained unchanged.

5. Highly profitable products accounted for higher percentage of the chemical division's sales than of those of pharmaceutical division.
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11 Dec 2005, 08:54

C is the answer

Sales of P is 20%, but profit is 40%. Means C's is 80%, but profit is 60%. The ratio of profit to sales is higher for than for C.

A company's two division performed with remarkable consistency over the past 3 yrs. In each of those years, the pharmaceuticals division has accounted for roughly 20 percent of dollar sales and 40 percent of profits, and the chemicals division for the balance